How political alliances shape trade and welfare in Europe
trade-wars
political-economy
Research with Karen Jackson finds NATO membership significantly boosts exports, and that expansion to Finland, Sweden, and Ukraine would benefit EU economies.
Written with Karen Jackson, this post sets out research on how military alliances like NATO shape European trade and welfare beyond their security role. The findings show that NATO membership significantly boosts members’ exports, that extending the alliance to Finland, Sweden, and Ukraine would benefit EU economies, and — strikingly — that smaller nations’ NATO accession looks close to “self-financing,” since the trade gains offset the cost of higher defence spending commitments. A US withdrawal from NATO or the alliance’s collapse, by contrast, would impose substantial economic costs on Europe.
Originally published on LSE EUROPP (European Politics and Policy blog), November 18, 2024.